Toyota's new large car, which will take the Toyota fight up to Commodore and Falcon, will be a much better vehicle than the American Avalon version it's based on, according to Toyota insiders.

Toyota tools up for a family sedan war

Toyota's new large car, which will take the Toyota fight up to Commodore and Falcon, will be a much better vehicle than the American Avalon version it's based on, according to Toyota insiders.

The big sedan will also have a more powerful version of the 3.0-litre V6 used in the Camry, which will continue to sell alongside the Avalon, probably with a realigned range.

The Australian version of the Avalon - to be renamed for the local market - will be much better suited to Australian conditions and its larger body will make it a more viable competitor against the long-standing Ford and Holden opposition.

Our Avalon will also be more refined, with styling revisions to boot.

While Holden is taking the Toyota threat seriously (even testing left-hand drive US-built versions in preparation), some Holden executives have quietly snuffed the Avalon as a serious competitor to the two rear-wheel-drive Aussie favorites - citing poor driving dynamics and front-wheel drive as marketing concerns.

There's also the question of the 3.0-litre V6 engine matching it against Mitsubishi's revised 3.5 Magna, Ford's 4.0 Falcon and Holden's 3.8 Commodore. Toyota is apparently already looking at realigning the Camry range and even dropping some Camry models when Avalon comes on line.

Sources say two years of testing and develop ment have vastly improved the Avalon. It will be thoroughly Australianised, despite not going for the logical step of a larger engine.

But Toyota is tight-lipped about details and has even halted special tours of its Altona production facilities, where the Corolla is still being built.

Suspension will be firmer than the sloppier American tuning, with better damping and more appropriate spring rates. The interior is also said to have been revised with better seats and, in some areas, a fraction more space than the American version.

And the Avalon story doesn't end there. Toyota wants to challenge Ford and Holden all the way to the race track. It is in the throws of talking to the sport's regulators about the feasibility of developing a V8 Supercar.

While some Toyota executives are yet to be convinced about the idea, many are very keen. However, a local race program is a long way from being given the go-ahead.

But don't put off that order for a Commodore SS or Falcon XR8 just yet in the hope of a production V8 Toyota. The only V8 engine Toyota has now is the 4.0/4.7-litre from the Lexus range (also fitted to the LandCruiser GXV), which was designed for a north-south positioning in rear and four-wheel-drive models.

No doubt Toyota will scour its global parts bin for other ideas to build a true Toyota Aussie muscle car. Insiders have also suggested the Camry's smaller, lighter body make it the obvious choice for sports versions, such as the Touring and GT-P models.

In the meantime, Toyota Australia's focus is on tooling up the Altona production line from Corolla to the Avalon. At the moment, the Corolla Liftback is imported while the sedan and Seca hatch are built locally.

From next year all Corollas will be fully imported and will have a 1.8-litre engine.